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Korea’s Top Financial Regulator Vows to Reset Restructuring Policy for Shipbuilding Industry

Although shipbuilding orders awarded to Korean dockyards have recently increased, there is a need to confirm whether the increase is a temporary phenomenon or a long-term trend, said a top financial regulator on Oct. 18.

Choi Jong-koo, chairman of the Financial Services Commission, said Korean shipbuilders’ order receipts have recently increased amid a rise in global shipbuilding orders.

“The share of orders placed on Korean shipbuilders in the total global shipbuilding orders rose from 29.8% in September of last year to 45% in September of this year,” Choi said at a meeting organized to examine the current state of the Korean shipbuilding industry.

Yet he stressed that it is necessary to reexamine the management strategy of each shipbuilder based on whether the recent rise in shipbuilding orders is a temporary phenomenon or a long-term trend.

He also said the FSC will reset the restructuring policy for the shipbuilding industry towards building an efficient ecosystem. He noted the need to assess new opportunities for the Korean shipbuilding industry coming from new regulations on ship carbon emissions and ballast water. He said the restructuring policy will be based on a review of the Korean shipbuilding industry’s innovation capabilities for ICT-powered and smart vessels.”

In the meantime, during the meeting, Dr. Yang Jong-seo of the Global Economy Research Institute at the Export-Import Bank of Korea made a presentation on the global and domestic shipbuilding markets. “Shipbuilding orders to Korean shipbuilders in 2018 are more than expected thanks to orders for many LNG carriers and a big order from Hyundai Merchant Marine,” Yang said. He projected that Korean shipbuilders’ would receive orders totalling 11 million CGTs, up 50 percent from last year, with the value amounting to US$25.4 billion, up 48 percent from 2017.

Source: BusinessKorea

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